The Saudi Electricity Company (SEC) has signed a six billion Saudi riyal ($1.5 billion) loan arrangement with six local banks to finance capital investments, according to SEC's chief executive.

According to chief executive, Sulaiman Al-Qadi the loan arrangement is a first for SEC. The financing, repayable over 15 years, will be used to support the company’s ongoing capital expenditure program, Al-Qadi announced in a press statement.

Participating banks are Banque Saudi Fransi, Samba Financial Group, the National Commercial Bank, the Arab National Bank, the Saudi British Bank and Saudi Hollandi Bank. Gulf International Bank acted as financial adviser.

The Saudi electricity sector is undergoing major restructuring with SEC becoming more private following the complete lifting in April 2000 of government subsidies for electricity. SEC posted $396 million in net profits for 2003. — (menareport.com)